Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.
Multistate
- 18 attorneys general submitted proposed legislation to Congress to pass the National Collegiate Athletic Association (NCAA) Accountability Act of 2023. The proposed legislation aims to ensure NCAA provides transparent due process in investigations and create fairness for student-athletes, coaches, and institutions. It also would establish an enforcement mechanism by authorizing the Department of Justice (DOJ) to levy fines or take removal action against the NCAA or individuals who violate the law.
- A bipartisan coalition of 8 attorneys general announced that the state has joined a multi-state settlement with Robinhood Financial LLC which will pay up to $10.2 million in penalties for operational and technical failures that harmed investors. The settlement is the result of an investigation spearheaded by regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas coordinated through the North American Securities Administrators Association (NASAA).
- A coalition of 21 attorneys general filed a lawsuit challenging a new presidential administration rule requiring all states with National Highway System mileage to take affirmative steps to set declining targets on reducing CO2 emissions. The coalition argues that Congress has not given the U.S. Department of Transportation the authority to regulate greenhouse gas emissions.
- A bipartisan coalition of 24 attorneys general filed a multistate amicus brief in the U.S. Supreme Court case Murthy v. Missouri supporting the right of the federal government to communicate with social media companies about matters of public concern. The brief argues for the reversal of the Fifth Circuit’s decision in Missouri v. Biden which affirmed an injunction prohibiting petitioners from communicating with social media platforms regarding content moderation. The brief also argues that if the decision is upheld, it could chill the ability of government agencies to engage productively with the private sector in order to protect the public online.
- 24 attorneys general filed an amicus brief in Garland v. Cargill to urge the U.S. Supreme Court to overturn an appellate court decision that struck down a 2018 regulation that clarified that the federal law banning machine guns also bans bump stock-type devices. Bump stocks were created to evade federal regulations and are marketed as workarounds to the ban on automatic weapons.
California
- Attorney General Bonta issued an opinion stating that there would be no significant legal risk to the state in implementing a law regulating interstate cannabis commerce. The opinion reasoned that although courts could find the law preempted by the federal Controlled Substances Act, regulation of interstate cannabis commerce has ultimately not been fully considered.
Connecticut
- Attorney General Tong announced Vision Solar LLC filed for Chapter 7 bankruptcy following Connecticut’s lawsuit against it, alleging the company violated the Connecticut Unfair Trade Practices Act, the Home Improvement Act, and other state laws. It claims the company pressured consumers into loans for solar panels they could not afford.
Delaware
- Attorney General Jennings announced that Delaware’s Medicaid program would receive over $7 million dollars following a settlement resolving False Claims Act (FCA) and Delaware False Claims and Reporting Act (DFCRA) allegations against Christiana Care Health System (CCHS). The case, initiated by a whistleblower, alleged that CHSS provided free or below-market value support services to non-employee doctors, who then referred patients to CHSS. The referrals were then billed by CHSS to Medicaid.
New Jersey
- Attorney General Platkin announced that the state’s Bureau of Securities has filed a civil enforcement action against the former vice-president of a New Jersey-based real estate investment firm that allegedly defrauded investors who had invested $630 million nationwide. The action alleges that the former vice-president sold unregistered securities issued by Oasis Realty Investment Group, LLC, a Delaware-based firm that he founded while still working for National Realty Investment Advisors (NRIA), and misused investor funds for personal benefit.
New York
- Attorney General James announced that following an investigation revealing that New York Presbyterian Hospital (NYP) disclosed the health information of individuals who visited their website to third-party tech companies in violation of Health Insurance Portability and Accountability Act (HIPAA), a settlement of $300,000 was reached. The hospital operates ten hospitals across New York City and the surrounding metropolitan area.
- Attorney General James secured more than $740,000 from online mental healthcare provider, Cerebral, for its long and burdensome cancellation process and its practice of charging consumers after they tried to cancel. The OAG found that when subscribers attempted to cancel their Cerebral subscriptions via email, it required subscribers to take a number of additional steps, such as a multi-question survey, before processing the cancellation. Cerebral also illegally directed its employees to manipulate online reviews of its services by posting fake reviews and “upvoting” positive content and “downvoting” negative content.
- Attorney General James filed a lawsuit against SiriusXM Radio for “trapping consumers in unwanted subscriptions” through deceptive and burdensome cancellation practices. The complaint alleges that the satellite radio company forces its subscribers to endure a lengthy cancellation process, which takes an average of 11.5 minutes by phone and 30 minutes online. The OAG’s lawsuit claims that these practices violate state and federal laws concerning automatic renewals.
Pennsylvania
- Attorney General Henry announced a settlement with Florida-based marketing company, RMC Direct Mail Services, LLC, over allegedly deceptive warranty mailers sent to Pennsylvanians. Investigations revealed that the company created and mailed advertisements for warranties that included false representations designed to illicit responses.
Texas
- Attorney General Paxton announced that the office has obtained an Assurance of Voluntary Compliance (AVC) with CSC Holdings, LLC, an operating subsidiary of the telecommunications company Altice USA. Texas residents had reported a pattern of issues with the company’s billing practices, slow internet speeds, frequent outages, poor customer service, and misleading promotions and sales practices. The company has agreed to pay $350,000 to the state and provide consumers adequate internet, broadband, television, and phone services.